Business and Economics Multiple Choice Questions

What is total revenue?

• the quantity sold multiplied by the price paid for each unit.

• the amount that a firm spends on all inputs that go into producing a good or service.

• the quantity produced multiplied by the cost of producing each unit.

• the amount that an individual gets paid over a specified period of time, typically annually.

Total revenue can be defined as:

• the amount that a firm receives from the sale of goods and services.

• the amount that a firm spends on all inputs that go into making a good or service.

• the sum of total costs and total sales.

• the amount that an individual can spend on disposable goods and services.

In business, the "bottom line" refers to the very last line of a(n):

• balance sheet, which shows profit.

• balance sheet, which shows total income.

Total cost includes:

• only expenses that are variable.

• one-time expenses, but not ongoing expenses.

• one-time expenses and ongoing expenses.

• only ongoing expenses, not one-time expenses.

The amount that a firm receives from the sale of goods and services is called:

• total cost.

• net profit.

• total revenue.

• profit.

An example of an ongoing expense for a toy company would be buying:

• a sewing machine, and would be included in total cost.
• advertising for their products, and would be included in total cost.

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Total cost includes:

• forgone opportunity costs.

• one-time expenses and ongoing expenses.

• All of these describe the total cost.

• the amount the firm spends on all inputs that go into the production of a good or service.

Economists assume the central goal of any business is to:

• maximize sales.

• minimize total costs.

• maximize profit.

• maximize market share.

In a perfectly competitive market price takers exist because:

• there are many buyers and sellers.

• there are few sellers and many buyers.

• there are few sellers and buyers.

• there are few buyers and many sellers.

Most markets in Canada:

• are monopolies.

• have some degree of competitiveness, but are not perfectly competitive.

• are perfectly competitive.

• have very few competitive features and so are regulated by the government.